"Any fool can know. The point is to understand.”
― Albert Einstein
"When you really listen to another person from their point of view, and reflect back to them that understanding, it's like giving them emotional oxygen".
"Understanding what you are doing and why you are doing it is the only way you can properly find a problem and the solution to it".
-Craig Staszak
When speaking of AML methods and techniques I often notice a gap in understanding the lifestyles of different levels or classes of society.
Several years ago I was in a meeting regarding AML/ATF policies for a financial institution. I had voiced my concerns regarding techniques and vehicles used for money laundering such as Watches, Pens, vehicles, art, and other collectibles. I was immediately scoffed at and silenced by the management who was participating.
― Albert Einstein
"When you really listen to another person from their point of view, and reflect back to them that understanding, it's like giving them emotional oxygen".
"Understanding what you are doing and why you are doing it is the only way you can properly find a problem and the solution to it".
-Craig Staszak
When speaking of AML methods and techniques I often notice a gap in understanding the lifestyles of different levels or classes of society.
Several years ago I was in a meeting regarding AML/ATF policies for a financial institution. I had voiced my concerns regarding techniques and vehicles used for money laundering such as Watches, Pens, vehicles, art, and other collectibles. I was immediately scoffed at and silenced by the management who was participating.
With the recent record prices that art is fetching at Sotheby's and Cars at Barret Jackson and pebble beach concourse D'elegance, I see the concern for the prices being paid being scrutinized by AML/ATF experts. These concerns are combined with comments that reflect confusion and misunderstanding reminiscent of what I experienced in the meeting.
After the meeting I conducted further research throughout the ranks of the company and found that there was an enormous disconnect between thought processes of your typical reviewer making 25-50k /yr, to the policy makers at 50-150-200k/yr combined family income and the thought processes and lifestyle of the people and companies they were entrusted with monitoring.
Lack of understanding were concerning people with political ties and what it means, the misunderstanding of luxury versus necessity when it came to domestic help and personal assistants, and how a private plane wasn't a luxury when it's used to maintain efficient business continuity.
I found it difficult to convey to some people that there are watches, and pens that are valued higher than an income they would make in a lifetime and that overpaying for one could mean sending someone money, funding an army, paying for drugs etc.
The examples are basic, but flow down to a general lack of understanding.
This may sound ridiculous to some, however a training in lifestyles of the rich and famous is needed. I state that somewhat tongue in cheek, but the principal remains the same. Train AML/ATF, Fraud and/or compliance people on what it is like at a the upper levels of a corporation, what an executives schedule looks like. Follow up the corporate lifestyle training with personal. It is of utmost importance for these people to understand the concept of having 1 million, 50 million, 500 million, 1 Billion and so on, and the different life responsibilities people with that level of wealth have.
Additionally Customer service people require this training. In essence every customer service person is akin to a personal assistant. Personal assistants, and domestic laborers need to understand their employer in order to properly service them, so why shouldn't the people who are looking after their financial needs?
In order to properly conduct AML/ATF There is a need for everyone involved with the handling of services and products, and the monitoring of them to understand the psychology and lifestyles of the many levels of society in which they are servicing.
Additionally Customer service people require this training. In essence every customer service person is akin to a personal assistant. Personal assistants, and domestic laborers need to understand their employer in order to properly service them, so why shouldn't the people who are looking after their financial needs?
In order to properly conduct AML/ATF There is a need for everyone involved with the handling of services and products, and the monitoring of them to understand the psychology and lifestyles of the many levels of society in which they are servicing.
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